Ethereum is Going to $6800 Area Only if..
If you are here only for the title, the answer is: ..only if the price action remains above 0.618 Fibbonaci retracement located at $3660, then the price action is likely to move into to the 1.618 extension located at $6800.
It's really incredible how Ethereum manages to hold such high value meanwhile Bitcoin is really struggling. Every time Ethereum has seen a much stronger dip, or an correction, than Bitcoin does.
As of right now, Ethereum is just -20% below the all time high at $4870 and Bitcoin is located -32% below the top at $69000!
Intraday dips continue to attract buyers and rallies doesn’t really attract sellers.
Let’s move to the technical. there has to be something hidden that will suggest that a correction that will overcome Bitcoin’s losses will follow, right?
Fibonacci retracements.
It’s very impressive how this Fibonacci has turned out. The key level of 0.618 has been successfully tested as valid and strong support as 4 days of price action are suggesting.
If Ethereum doesn’t fall below this golden ratio 0.618 retracement located at $3660, Ethereum could be very easily for extended gains to the $6800, where the golden 1.618 extension is located.
Price action.
Price action seems to have formed a falling wedge formation, which usually occurs in a correction and suggests a break to the upside from a correction.
Exponential moving averages.
Overall trend indicators are suggesting that currently Ethereum is in daily downtrend as the 20 EMA fell below the slow 50 one. The price action however doesn’t seem to be reacting.
Relative strength index.
Ethereum hasn’t seen a proper bearish momentum yet and RSI tells us the same story. As RSI is able to hold above 40, no bearish momentum is present. However it’s hovering at pretty thin ice and break below 40 will attract sellers.
No divergence can be found.
Moving average convergence divergence.
A selling wave is currently ongoing while the bearish volume continues to decrease. Same as for Bitcoin, both Moving averages need to go above neutral, 0, level in order to give a proper buy signal.
It's really incredible how Ethereum manages to hold such high value meanwhile Bitcoin is really struggling. Every time Ethereum has seen a much stronger dip, or an correction, than Bitcoin does.
As of right now, Ethereum is just -20% below the all time high at $4870 and Bitcoin is located -32% below the top at $69000!
Intraday dips continue to attract buyers and rallies doesn’t really attract sellers.
Let’s move to the technical. there has to be something hidden that will suggest that a correction that will overcome Bitcoin’s losses will follow, right?
Fibonacci retracements.
It’s very impressive how this Fibonacci has turned out. The key level of 0.618 has been successfully tested as valid and strong support as 4 days of price action are suggesting.
If Ethereum doesn’t fall below this golden ratio 0.618 retracement located at $3660, Ethereum could be very easily for extended gains to the $6800, where the golden 1.618 extension is located.
Price action.
Price action seems to have formed a falling wedge formation, which usually occurs in a correction and suggests a break to the upside from a correction.
Exponential moving averages.
Overall trend indicators are suggesting that currently Ethereum is in daily downtrend as the 20 EMA fell below the slow 50 one. The price action however doesn’t seem to be reacting.
Relative strength index.
Ethereum hasn’t seen a proper bearish momentum yet and RSI tells us the same story. As RSI is able to hold above 40, no bearish momentum is present. However it’s hovering at pretty thin ice and break below 40 will attract sellers.
No divergence can be found.
Moving average convergence divergence.
A selling wave is currently ongoing while the bearish volume continues to decrease. Same as for Bitcoin, both Moving averages need to go above neutral, 0, level in order to give a proper buy signal.
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